The internally generated revenue of Nigeria’s 19 northern states and the Federal Capital Territory, Abuja was 8% lower than Lagos State’s revenue in 2020, a state IGR report recently released by the National Bureau of Statistics (NBS) has shown.
Lagos State recorded the highest internally generated revenue in 2020, having made N418.99 billion, accounting for 32.08% of the total states’ IGR recorded in the period under review. However, the 19 northern states and the FCT had a total sum of N385.18 billion
According to the report, the states’ IGR declined by 1.93% from N1.33 trillion, recorded in the previous year to N1.31 trillion in 2020. It however increased by 11.7% compared to N1.69 trillion recorded in 2018.
The decline, according to the report may be due to the effects of the covid-19 pandemic on the various states of the federation, as they were forced to implement lockdown protocols to curb the spread of the disease in the country.
It is no surprise that Lagos State makes this much revenue as it is regarded as the commercial hub of Nigeria.
According to the data from NBS, Rivers State is a distant second on the list with N117.19 billion as IGR, representing 8.97% of the total, while the Federal Capital Territory, Abuja followed closely with N92.06 billion, representing 7.05% of the total recorded in the year.
Others on the list include Delta State (N59.73 billion), Kaduna State (N50.77 billion), Ogun (N50.75 billion), and Oyo State with N38.04 billion.
Kebbi State and Ebonyi State grew their internally generated revenue by over 80%, with Kebbi recording 87.02% growth in IGR to stand top on the list of states with the highest growth rate; followed closely by Ebonyi State with 82.3% growth in IGR to stand at N13.59 billion.
Oyo State grew its IGR by 42.23%, Borno (41.63%), Katsina (34.16%), and Gombe (25.5%).
Meanwhile, 18 out of the 37 states of the federation recorded a decline in IGR in 2020, a list led by Benue State, having dipped its annual IGR by 41.38%, followed by Sokoto with 37.93%, Kwara (36.03%), Jigawa (32.95%), and Ogun State with a decline of 25.44%.
The data released by the NBS also indicates that Yobe State reported a 7.87% year on year decline in revenue in the period.
In total, the 19 Northern states combine internal income stood at N385,182 billion representing 29.49% of the total sum of N1.31 trillion reported by NBS.
Of the total sum of N2.293 trillion shared by the Federal Accounts Allocation Committee (FAAC), the Northern States took N1.038 trillion.
The sum shared by FAAC indicates that Kano, FCT and Kaduna received highest allocation in the year at N81.265 billion, N67.064 billion and N63.126 billion respectively.
The NBS reports however showed that the decline in states’ internal revenue was caused by the pandemic which struck earlier in 2020, disrupting economic activities in the country.
The pandemic led Nigeria to a pandemic forced recession in the third quarter of 2020, after a consecutive economic contraction, recorded in Q2 and Q3 2020.
It, however, recovered from the recession in the fourth quarter. It is therefore hoped that as economic activities resume fully in the country, the states will be able to boost their revenue in the short-to-medium term.
By Abel Ejikeme